PHOTO: Kiwi property dealer Graeme Fowler and his wife Katrina have traded over 250 homes. Photo credit: Supplied.
Most people have heard the fairytale story of picking up a property for well-under market value, giving it a lick of paint and re-selling it for thousands more. But is that realistic?
Although profits from property can be high, given there’s no guarantee on what values will do in the short-term, holding costs can quickly erode any potential gain.
Newshub spoke to Graeme Fowler, an experienced property investor whose love of property has generated him a multi-million dollar business.
Fowler estimates he’s completed over 250 trades and renovations – averaging at around 15 properties a year, with 24 properties bought and sold during 2017.
As a professional property trader, Fowler is liable for tax and GST, accounting for around 38 to 40 percent of his profits.
To help novice investors get started, Fowler shares his knowledge of what a good ‘yield’ is and when it applies, where to look for properties and the risk of taking on structural renovations as opposed to cosmetic changes when selling on.
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